DeFi disaster continues as Curve Finance loses $570K in a hack — here’s what happened

YEREVAN (CoinChapter.com) — Decentralized Finance (DeFi) protocol Curve Finance has suffered a hack. According to reports, attackers have stolen $570,000 in the heist. 

Samczsun, a researcher at Paradigm, reported that the hackers had compromised the exchange liquidity pool’s front end. 

Curve Finance also shared the news, warning the community to be cautious. 

“Don’t use curve.fi site. Nameserver is compromised. Investigation is ongoing: likely the NS itself has a problem,” 

Curve Finance wrote. 

What do we know about the Curve Finance hack so far? 

As Lefteris Karapetsas, founder of the portfolio tracking tool Rotki, explained, the hackers changed the domain name system (DNS) entry for the protocol to their IP address, thus forwarding users to a fake clone site and approving a malicious contract.

According to Curve Finance, the hackers had attacked the servers of ‘I want My Name,’ the company providing DNS services to the liquidity pool.

However, as the platform asserted, the program’s contract remained uncompromised. Moreover, the hack had not impacted the curve. Exchange, although the company did warn to exercise caution. 

Shortly after the incident, the protocol’s operators said they found the problem’s source and fixed it. 

“The issue has been found and reverted. If you have approved any contracts on Curve in the past few hours, please revoke immediately,” 

Curve Finance announced. 

Meanwhile, Cryptocurrency exchange Fixed Float announced it had frozen 112 ETH (worth over $200,000 while writing) of the stolen funds. 

Recommended: NFT hackers have stolen nearly $90M worth of crypto collectibes so far 

Hackers are on a roll

The attack on the exchange liquidity pool comes amid a series of hacks on different platforms. For example, blockchain hackers stole approximately $1.3 billion in as many as 78 hack incidents in the first quarter (Q1) of 2022.

In the second quarter of 2022, attackers run off with $718.34 million through 48 major attacks on Web3 projects. 

In August alone, there have been at least four hacks. The last attack was on the ZB exchange, wherein hackers stole $5 million worth of cryptocurrencies.

Before that, swindlers stole $190.7 million from the Nomad token bridge, followed by another $7 million attack on Solana (SOL) wallets.

With Curve Finance now added to the list, 2022 may become the year of blockchain hacks. After all, there are still five months until the end of the year.